Over 20,000 unmarried individuals dwell in spaces larger than 100 square meters.
## Rising Housing Costs for German Welfare Recipients Spark Controversy Over Chancellor Merz's Proposal
In a bid to address the escalating housing costs for citizens' allowance recipients in Germany, Chancellor Friedrich Merz has proposed capping rent subsidies. However, this proposal has sparked controversy due to concerns about its potential impact on those in need and the root causes of rising housing costs.
Currently, the rental support for citizens' allowance recipients varies by location, with recipients living in a three-person home in Berlin able to receive up to €669 in rental support. However, actual rents can be close to or even exceed these limits, as the average rent for a single room in a shared apartment in Berlin might be around €650 per month. This situation has led to a record high expenditure on housing allowances, reaching €1.37 billion in March 2025, indicating a significant burden on public finances.
Critics of Chancellor Merz's proposal argue that capping rent subsidies does not address the root cause of rising housing costs. Instead, they suggest implementing rent controls and increasing affordable housing to tackle the issue more effectively. Political leaders like Dagmar Schmidt from the SPD and Sahra Mirow from Die Linke warn that reducing support could exacerbate homelessness, as recipients may struggle to afford their living costs.
The proposal is seen as part of broader austerity measures, which might lead to increased social and economic hardship for those dependent on state support. Critics argue that such measures do not address the underlying issue of low wages and rising living costs, which force many full-time workers to rely on state benefits.
Despite the controversy, the coalition partner's reaction to Merz's reform proposal was swift, with SPD parliamentary vice-president Dagmar Schmidt (52) strongly rejecting the plans, stating there will be no cuts in benefits. The statistics suggest that Chancellor Merz's criticism of the current rent payment practice for citizens' allowance recipients may be justified, as around 1.4 million benefit recipients live alone and have their rent paid by the state, representing a luxury that most working people cannot afford.
In March 2025, more than every third benefit euro (around 38 percent) went towards the rent of citizens' allowance recipients. A total of 181,667 "need communities" receive a state-paid apartment or house of 100 square meters or more as of March 2025, with a record value of €1.48 billion paid out for housing costs. Among these households, 20,236 are single households, 22,861 are two-person households, and 27,617 are three-person households.
The Federal Employment Agency (BA) confirmed Merz's statements about the high housing costs for citizens' allowance recipients. However, for around 92,000 households, the BA cannot make any statements about the size of the apartment. The reform proposal by Chancellor Merz pertains to capping housing costs for citizens' allowance recipients, a move aimed at addressing the pressing issue of rising housing costs in Germany.
- The controversy over Chancellor Merz's proposal to cap rent subsidies for welfare recipients has ventured into the realm of politics, raising concerns about its potential impact on those in need and the root causes of rising housing costs.
- Critics argue that an effective approach to addressing the escalating housing costs in Germany requires more than just capping rent subsidies, suggesting the implementation of rent controls and increasing affordable housing as a more comprehensive solution.
